Part 4Employment income: exemptions

Chapter 1Exemptions: general

227Scope of Part 4

1

This Part contains—

a

earnings-only exemptions, and

b

employment income exemptions.

2

In this Act “earnings-only exemption” means an exemption from income tax which—

a

prevents liability to tax arising in respect of earnings, either by virtue of one or more particular provisions (such as a Chapter of the benefits code) or at all, and

b

does not prevent liability to tax arising in respect of other employment income.

3

In this Act “employment income exemption” means an exemption from income tax which prevents liability to tax arising in respect of employment income of any kind at all.

4

The following provisions in Part 7 also confer exemption from liability to income tax in respect of earnings—

F1a

section 425 (restricted securities: no charge in respect of acquisition in certain circumstances),

b

section 475 (no charge in respect of acquisition of securities option),

c

sections 489 to 493 and sections 496 to 499 (approved share incentive plans),

F2d

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

e

section 519 (approved SAYE option schemes: no charge in respect of exercise of option),

F3f

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

g

section 524 (approved CSOP schemes: no charge in respect of exercise of option),

F4h

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

i

section 542 (priority share allocations: exemption where offer made to public and employees), and

j

section 544 (priority share allocations: exemption where different offers made to public and employees).